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Cryptocurrency mining stocks under review

Updated: Jan 16, 2021

One of my readers sent me an email a few weeks ago and asked me if the cryptocurrency mining stocks are worthwhile to buy, and I was so intrigued at the question that I started right away to find out if there is any sense at all for purchasing those big mining operators stocks. Here is the result, I'm sorry this was the best I could do in a few week's notice, but I hope it finds some interest in you.


I took five companies in the stock market and started to research their data and made my calculations after, and I DID some radical actions after it.. )


Bitfarms Ltd

Bitfarms Ltd is a cryptocurrency mining company in North America. Operations go through two different segments, Backbone and Volta. The Backbone is the owner and operator for separate server farms, primarily validating transactions on the blockchain and earning coins from block rewards and transaction fees. The Volta side is electricity service to commercial and residential customers in Canada. It has five server farm units that mine different types of cryptocurrencies. Bitfarms Ltd was established in 2017, and its headquarter is in Canada, in the city of Toronto.

Ticker: BITF

Exchange: TSXV

Stock Price: 0.39 CAD

Market Cap: 33.0m CAD = 25.17m USD

Debt: 15.6m USD (March 2020)

Mining:

Hash power: 813 PH/s

Energy consumption: 56.8 MW

Watts per 1 TH/s: 70 kW

Machines:

  • 29,000 ASIC miners spread across five facilities

  • 1,865 WhatsMiner M20S

  • 1,000 WhatsMiner M31S+

Q2 2020 Financial Summary and Corporate Highlights

  • Consolidated revenue of US$7.4 million; gross loss of US$0.1 million (-2% gross loss margin), operating loss of US$1.5 million (20% operating loss margin), and a net loss of US$3.7 million,

  • Mining operations gross mining profit of US$2.5 million (36% gross mining margin).

  • US$0.4 million EBITDA (6% EBITDA margin) and US$1.4 million Adj. EBITDA (19% Adj. EBITDA margin).

  • 815 Bitcoins mined with an average break-even Bitcoin price of $5,075.

  • The company completed 5MW expansion of the Company's St-Hyacinthe facility to increase the maximum capacity at St. Hyacinthe from 10 megawatts ("MW") to 15 MW.

More highlights:

  • Own electricity: 100% owned electrical contractor, Volta Electrique (160 megawatts hydroelectricity)

  • Electricity price 0.04/kWh USD

  • Total assets: 47,654M USD, Total liabilities: 24,256M USD, Total equity: 23,398M USD

  • Price to Book (PB) ratio 1.08x.

  • The debt to equity ratio (68.8%) is considered high.

25.17m USD market cap with 813000 TH/s.

price for 1 TH/s is 30.96$


Marathon Patent Group

Marathon Patent Group, Inc says that it is a digital asset technology company that mines cryptocurrencies. It owns all the mining machines it uses and also a data center in Canada. The Companys's name was before American Strategic Minerals Corporation, but it changed its name to Marathon Patent Group in February 2013. The company was founded in 2010, and its headquarter is in the USA, Las Vegas.

Ticker: MARA

Exchange: Nasdaq

Stock Price: 2.09 USD

Market Cap: USD 67.2m

Debt: 1.12M (2019 Annual Financials)


Mining:

Hash power: 186 PH/s (will be 1155 PH/s in June 2021)

Energy consumption:?

Watts per 1 TH/s:?

Machines:

  • 700 M31S+ ASIC Miners from MicroBT

  • 10,500 S19 Pro Antminers

Q1, 2020 results:

  • Marathon Patent Group's revenue was $592k during the three mon